Start Cold Storage Business in India

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The cold storage business is a type of facility where you can store fruits and vegetables and can preserve them for a longer time. It is a fast doing industry in India due to its high demand, superior profit margins, and better tax benefits. If you are looking to invest in a business that only requires a one-time big investment, then the cold storage business is the best choice. The initial investment might seem higher compared to other businesses, however, you will be getting higher returns in the long run. In this article, you will learn about the advantages and registrations of starting a cold storage business in India.

Why is a cold storage business important?

Throughout the world, fresh fruits and vegetables are wasted in higher quantities. Usually, the countries that produce more food crops, waste the maximum amount of food. One such country is India and therefore a cold storage unit is required for extending the shelf life and marketing. Of the products. Additionally, cold storage can help you avoid gluten, reduce transportation costs and also maintain the product quality. Basically, there are two types of cool storage units. One is the multi-purpose one and the other one is the product-specific storage (for products like potatoes, tomatoes, and other vegetables). Both these offer significant benefits.

What are the various benefits of a cold storage business?

What are the various benefits of a cold storage business

  • It can be used to store various types of perishable products, including vaccines and medicines.
  • It reduces the overall wastage of fruits and vegetables
  • Customers can get processed and packaged food
  • Customers will get off-season farm products at low rates.
  • It helps the agriculturalists and farmers get remunerative prices for their crops.

What are the various steps you need to follow to start cold storage business in India?

tasks_2021_2xGetting a big location

A cold storage unit is basically a warehouse where air conditioning systems are used to preserve vegetables and fruits. Therefore, you need a large space where you can set up a cold storage unit. You need to be as close as possible to farmlands and consumer centers.

tasks_2021_2xLicenses and registration required

One of the main things that you have to consider before starting a cold storage business in India is to get the proper licenses and registration for your business. Before applying for a license, you have to make sure that you are following the safety and hygiene standards prescribed by FSSAI.

Some of the legal documents and registrations required are:

  • Company Registration
  • FSSAI Registration
  • GST Registration
  • Trade License

tasks_2021_2xSelection of types of equipment

In India, summers are very hot and the heat is immense. Therefore, you need to select equipment as carefully as possible and install them to avoid power cuts and heavy loads. Some of the factors you may consider before selecting the equipment are equipment age, the heat produced from stored products, ceiling height, wall, floor, etc.

tasks_2021_2xThe maintenance and cleaning of the warehouse

Maintenance of your cool storage unit is equally important and you need to keep the area as hygienic as possible. So you have to check the temperature regularly and check the humidity level to preserve your products. Additionally, timely servicing of the equipment and cleaning of the trees and storage bins also need to be done.

tasks_2021_2xMarketing and the target audience

The success of your cold storage business in India depends on your marketing strategies, advertising campaigns, and your social media posts. Initially, you have to target various segments of the market like wholesalers, promoters, retail marketers, traders, warehouse companies, supermarkets, etc.

tasks_2021_2xArranging funds

One of the hardest challenges that you will face to start cold storage business in India is the arrangement of funds. Every business requires substantial capital investment. You can directly invest from your savings or you can apply for bank loans. You can avail collateral-free business loan if you have MSME Registration. However, you also need to have a proper business plan where the total cost of the equipment, cost of land, cost of maintenance, cost of workers, and your future approach have to be explained.

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Investing in a cold storage business is definitely a win-win business idea for all entrepreneurs who are willing to invest in a reliable business domain. However, you need to remember that the success of your course storage business will totally depend on the security and the hygiene protocols that you maintain in your cold storage unit. If you feel to keep the facility clean and working, then you will certainly fail. So you need to buy proper equipment, get experienced employees and the most important part is to get the correct licenses and registration. You should also invest in ISO Certification to correctly conduct your business.

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